A group representing dozens of businesses that rely on the oil industry says Newfoundland and Labrador Premier Danny Williams should be more mindful of the massive "Jack 2" oil discovery in the Gulf of Mexico.

Oil giant Chevron, one of the partners of the find announced Sept. 5, has been deadlocked with Williams over development of the Hebron megaproject, off Newfoundland's east coast.

Danny Williams said he is prepared to let Hebron remain undeveloped, if he cannot negotiate a better return for the provincial government.
(CBC)

Ted Howell, president of the Newfoundland Ocean Industries Association, said the new field — known in the industry as Jack 2 — could affect Newfoundland's burgeoning oil industry.

"Any new discoveries in the world obviously add to their reserves and will influence their decisions, in terms of development here in Newfoundland and Labrador or elsewhere in the world," Howell said.

"The most important thing here is to recognize that we are operating in a globally competitive environment."

Ted Howell said projects like the Jack 2 field could influence development of fields off Newfoundland.
(CBC)

Williams — who broke off negotiations with Chevron and its Hebron partners this spring when an agreement could not be reached on a provincial ownership stake, among other issues — has said he is not worried about the Jack 2 announcement.

"Whether they find Jack or John or Bill or anything around the world, I really couldn't care less," Williams said earlier this month.

"Any North American reservoirs are very important. And our Hebron reservoir is no less important."

Chevron Canada Resources is the operator of the Hebron field. The majority partner is ExxonMobil Canada, which Williams has blamed for the current standoff. Other Hebron partners are Petro-Canada and Norsk Hydro Canada Oil & Gas.

Williams has been lashing out in recent weeks at what he calls "big oil" and its alleged influence over federal politicians.

When Prime Minister Stephen Harper refused to intervene in the dispute between the Hebron partners and the provincial government, Williams described Harper's response as "disgusting, disgraceful and shameful."

"Obviously, big oil has some influence on Ottawa," Williams said last Friday.

Then, this week, Williams conceded a loss in trying to appoint St. John's Mayor Andy Wells to head the Canada-Newfoundland and Labrador Offshore Petroleum Board.

Williams again blamed "big oil" for persuading the federal government not to agree to his suggestion to split the jobs of CNLOPB chairman and chief executive officer.

Williams said that while he would like to see talks begin again on Hebron, he is prepared to let the project remain dormant.